Meet Gene, a NASDAQ Market Maker Message Board

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Non-Tech : Meet Gene, a NASDAQ Market Maker

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To: Perry Ganz who wrote (16)	7/26/2000 6:16:53 PM
From: gene_the_mm	Read Replies (2) of 1426

REGARDING BLOCK TRADES... Block trades like the one you mentioned are usually executed by the largest institutional firms. They receive the order from the institution quite a bit before the market-on-close or VWAP print goes off, so for the most part that firm would not be going at risk on much, if any for that customer. As far as other market makers knowing about that order that is an absolute no. It would be ILLEGAL for an MM to know about another MM's orders (in other words if the MM's collude and share information about customer orders) and it would disadvantage him and his customer if they did know. However, it is the job of a market maker and a day trader to predict what is happening in a stock and try to go at risk and make money based on those assessments. At the same time it is the MM's job to make sure his customers are taken care of and the MM will have to compete on behalf of these customers versus the other buyers. Therefore, MM's will TRY to determine what is going on in a stock (that is his job) and hopefully not 'blow himself up' by taking too much risk. It is a tricky business and not for the feint of heart, that I can tell you for fact. Thanks for the questions, -- Gene

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